Next issue NS&I index linked certs

verdie

Has anyone got any idea when the next issues are likely to be coming along? Its like waiting for the kettle to boil!

darren72

Any idea whether they are likely to increase or decrease the interest rate on the new issue ??

martinman3

verdie wrote: »

Has anyone got any idea when the next issues are likely to be coming along? Its like waiting for the kettle to boil!

I assume that you have maxed out both the 3 year and 5 year issues.
For anyone else reading this it is important to note that you can have £15000 in each issue making a total of £30000.

I refrain from giving investment advice here but Index Linked Certs in the current climate of possible interest rate falls and potentially rampant inflation are a great deal. You can cash parts of them in at any time during the term, try that with most fixed rate bonds (not a good idea in the first year though as you don't get any interest or index linking).

GooeyBlob

martinman3 wrote: »

I refrain from giving investment advice here but Index Linked Certs in the current climate of possible interest rate falls and potentially rampant inflation are a great deal. You can cash parts of them in at any time during the term, try that with most fixed rate bonds (not a good idea in the first year though as you don't get any interest or index linking).

I could not agree more, they are an outstanding deal at the moment if you are a taxpayer. Inflation is rampant, averaging 4.3% last year and has the potential to go higher in 2008. Index-linking of 1.35% on top of that is 5.65% tax free, and if you work out the equivalent gross rate you realise just how good these certificates are.

If rates keep falling and inflation keeps rising (which it will if the BoE keeps cutting rates) the returns could prove to be unbeatable.

ManAtHome

Definitely good for taxpayers, great for higher-rate payers - could be why they're not in a rush with a new issue (also uncle gordon wants you to spend it all.. now!).

nrsql

Uncle Gordon is also very short of funds - will be interesting to see what happens.
The rate could reduce as it's such an attractive product at the moment.
Could rise to attract as much as possible.
Could reduce to deter investors and increase the tax income.
Could rise to encourage savings.

I think the next issue is fairly overdue which makes me think this issue has been well subscribed and they may reduce the rate on the next one. I was a bit surprised that it increased with this issue.

KITCHEN1_2

FYI, you can have more than £15000 per issue.You can have £30,000 per issue. £15k in your name and £15k held in trust with you as the beneficiary. For a couple you can do £60,000 by each of you creating a trust for each other.That of course applies to both 3 and 5 yr certs so £120k in total per issue per couple.
For certs nominated for trust you can't get them online. You have to ask them for an application and post it in otherwise the process is absolutely painless.

"If rates keep falling and inflation keeps rising (which it will if the BoE keeps cutting rates) the returns could prove to be unbeatable."....no ,not literally ,but relative to risk I'd agree for high rate tax payers they are a must have.

Liz_the_Whizz

GooeyBlob wrote: »

Index-linking of 1.35% on top of that is 5.65% tax free, and if you work out the equivalent gross rate you realise just how good these certificates are.

Equivalent gross rate for basic rate taxpayers of 7.06%, according to handy calculator at foot of page on Tiscali Money Channel Savings page.

http://www.tiscali.co.uk/money/savings/

Not at all a bad rate.

macvaio

If you are going to be putting money into one of these is it best to do it now, or wait until next issue?

Thanks

Mark

KITCHEN1_2

Your question perhaps implies that someone might know if the next issue will have an higher return than the current one. They don't. Given that it is random whether the next issue will be higher ,or lower than the present one then aggregate the return by putting half into the current issue and retain half to use if the next issue still looks like an attractive investment vis a vis alternatives.

barak

KITCHEN1 wrote: »

Your question perhaps implies that someone might know if the next issue will have an higher return than the current one. They don't. Given that it is random whether the next issue will be higher ,or lower than the present one......

Random? Lower surely - but still irresistible for many. How will they handle all the applications?